1. Melissa Holbrook Kentucky Public Service Commission September 19, 2017
2017 Gas 101 Training
Melissa Holbrook
Kentucky
Public Service Commission
September 19, 2017
Lexington , KY

2. Commissioners
Chairman-Michael J. Schmitt
Vice Chair-Robert Cicero
Commissioner- Talina Mathews

3. Division of Inspections
John Lyons- Division Director / Deputy Executive Director
Pipeline Safety Branch
James Rice- Gas Coordinator
Bill Aitken, Utility Investigator
Melissa Holbrook, Utility Investigator
Steve Samples, Utility Investigator
Joel Grugin, Utility Investigator
Mark McCullough, Utility Investigator

4. Federal Legislation The Natural Gas Pipeline Safety Act of 1968
Authorizes U.S. DOT to prescribe safety standards and regulate pipeline transportation of natural gas
The Act established procedures by which states can acquire the authority to regulate pipeline safety and enforcement of natural gas.
The Federal/State partnership is the cornerstone for assuring uniform implementation of the pipeline safety program nationwide.

5. Part 190 Regulatory Authority
(b) Inspections are ordinarily conducted pursuant to one of the following: (1) Routine scheduling by the Regional Director of the Region in which the facility is located; (2) A complaint received from a member of the public; (3) Information obtained from a previous inspection; (4) Report from a State Agency participating in the Federal Program under 49 U.S.C ; (5) Pipeline accident or incident; or (6) Whenever deemed appropriate by the Associate Administrator.

6. Part 190 Regulatory Authority
(a) Officers, employees, or agents authorized by the Associate Administrator for Pipeline Safety, PHMSA, upon presenting appropriate credentials, are authorized to enter upon, inspect, and examine, at reasonable times and in a reasonable manner, the records and properties of persons to the extent such records and properties are relevant to determining the compliance of such persons with the requirements of 49 U.S.C et seq., or regulations or orders issued thereunder.

7. PSC’s Role Pipeline Safety Program
1970: Selected by General Assembly as the state agency to enforce the federal pipeline safety standards
U.S. DOT and PSC Partnership
U.S. DOT reimburses state agency up to 50% of personnel, equipment, and operating costs incurred in carrying out a safety program for intrastate pipeline facilities under a certification or agreement
Certification – State must adopt the minimum Federal regulations and provide for injunctive and monetary sanctions (enforcement) substantially the same as those authorized by the pipeline safety statutes.
Agreement – Inspection of pipeline operators to ascertain compliance with Federal safety regulations, any probable violations are reported to OPS for enforcement action

8. USC Section 60117 (c)- Entry and Inspection
By displaying proper credentials, inspectors
have the right to enter the premises.
Inspect records and property
Reasonable time and manner

9. PSC Mission
To foster the provision of safe and reliable service at a reasonable price to the customers of jurisdictional utilities while providing for the financial stability of those utilities by setting fair and just rates, and supporting their operational competence by overseeing regulated activities.

10. Safety Regulations Applicable to Natural Gas Systems
49 CFR Part 192 – The Minimum Federal Safety Standards Applicable to the Transportation of Natural Gas and for Pipeline Facilities Used for this Transportation

11. KY PSC Regulates Pipeline Safety
Private Distribution - 22
Municipals - 49
Master Meters - 102
Intrastate Transmission - 27
Jurisdiction Gathering – 11
Total: 211 natural gas operators

12. Inspections Private Distribution Municipals Transmission Construction
Master Meter
Jurisdictional Gathering
Farm Taps
Control Room Mgt.
Accidents/ Incidents
Complaint Calls

13. 2017 Inspections Standard Inspection 3 year cycle/ Risk Rank
Procedures
O&M Activities
Annual Report
Annual Report Financial
Incidents
Construction Records
Damage prevention
Drug/ Alcohol Plan
DIMP Implementation/ 5 Year Evaluation
NTSB Questions
Operator Qualification plan/records/protocol 9
Cyber Security

14. Risk Ranking Number Violations Last Inspection
Compliance History
Number Violations Last Inspection
Failure to Comply with New Regulations
Follow-up needed (Inspector )

15. Risk Ranking Operator Concerns New Operator
Management / Employee Changes
Inspector Knowledge
Incident History
Construction Activity
Last Inspection

16. After The Inspection Checklist will be reviewed
Inspector will write Cover Letter
Inspector Must send Report to an
Officer of Company or Mayor
Report will be sent within 30 days of inspection.
Watch for report in mail

17. Report with Deficiencies
Review Report in Detail
Look for Response date on cover letter
Respond to PSC Staff (Inspector) within Requested time.
Inspections turned over to Enforcement Group – No Response, Excessive Violations, Repeat Violations, Leak Survey.

18. 2016 / 2017 Top Findings Not maintaining records
Not Properly documenting leakage surveys
No Welding Procedures
No Pipe Fusion Records
Contractors not properly Operator Qualified
Employees not proper OQ Qualifications
Employees not properly trained
5 year DIMP Evaluation
Not doing what plan says

19. 2017 PSC Inspection Focus Operators Gas Loss Operators Leak Surveys
Repeat Violations
Excessive Violations
No Response or Action Taken
Operator Qualification

20. 2017 PHMA Updates Federal Incident Reporting - 1 Hour
Underground Storage
Excess Flow Valves – Effective April 14, 2017
PSC Received PHMSA Deficiency Letter
Damage Prevention Enforcement
PHMSA Annual Audit Results

21. PSC Goals 2017 GAS 101 Training for Mayors & City Officials
Hire New Inspector
Complete 2017 Inspections
2018 Gas 101 Training for Mayors and City Officials
2018 Training for Municipal and Small Operators

22. PSC CASES

28. Questions ???

29. Pipeline Safety Investigator Gas Pipeline Safety Branch Division of Inspections
Melissa Holbrook
211 Sower Blvd.
Frankfort, KY 40602
Ph: (502)
Cell:
Fax: (502)
MelissaC.